When 9,000 Shares of $8 Stated Value Common Stock Is

question 73

Multiple Choice

When 9,000 shares of $8 stated value common stock is issued at $13 per share,________.

• A)Common Stock - $8 Stated is credited for $117,000
• B)the account titled Paid-In Capital in Excess of Stated is used to record the issue price of the stock
• C)the difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated
• D)the accounting is exactly the same as the accounting for par value stock

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Definitions:

Broadest Possible

Referring to the widest or most comprehensive scope or extent.

Meteorological Phenomenon

An observable event that is explained by the science of meteorology, such as storms, tornadoes, and rainfall.

Spectrum

A range of different positions, opinions, or conditions, often seen as a continuous series.

Rainbow

An optical and meteorological phenomenon that causes a spectrum of light to appear in the sky when sunlight is dispersed through water droplets in the atmosphere.